Meta Platforms has agreed to significant modifications on Facebook and Instagram and will pay a sum of up to $18 billion US to settle claims brought by various states in the United States. The allegations against the company included accusations that the apps were designed to create addiction among children, deceived consumers about their safety, and improperly gathered personal information from children using the platforms.
The settlement was reached during a high-profile California federal trial that focused on claims that social media companies were harming young users. Despite agreeing to the settlement, the California-based company denied any wrongdoing.
As part of the agreement, Meta will implement restrictions over the next ten years, limiting teenagers’ daily usage of Facebook and Instagram to two hours with a complete block on usage between midnight and 6 a.m. unless parental consent is given. These restrictions may be further tightened if other social media companies adopt similar rules.
Furthermore, Meta will enhance measures to prevent children from accessing age-restricted content. Notably, the settlement does not mandate Meta to abandon personalized recommendations or targeted advertising. It also does not address certain problematic content identified by Meta researchers, such as posts on Instagram that negatively impact body image.
The total settlement amount, equivalent to about three to four months of profit for the company based in Menlo Park, California, demonstrates Meta’s commitment to ensuring a safe and constructive experience for teenagers on its platforms. The settlement includes payments of over $16.7 billion US to 47 U.S. states, Washington, D.C., Puerto Rico, American Samoa, and the Northern Mariana Islands, with Texas reaching a separate settlement exceeding $1 billion US.
The settlement also resolves lawsuits by California, Illinois, New Mexico, and Washington, D.C., related to privacy issues stemming from the Cambridge Analytica scandal. States involved in these claims will receive $459.3 million US to settle their lawsuits.
U.S. District Judge Yvonne Gonzalez Rogers approved the primary settlement, excluding Texas, and commended the agreement as a positive step forward during a hearing. The settlement is part of a broader legal battle where states, local governments, school districts, and individuals have accused social media companies, including Meta, of contributing to a national youth mental health crisis.
Moving forward, Meta, Snapchat, YouTube, TikTok, and their respective parent companies face numerous lawsuits in federal and state courts alleging that they deliberately designed their platforms to be addictive to young users, exacerbating mental health issues. These legal battles are ongoing, with thousands of cases pending in state courts and consolidated federal lawsuits overseen by Judge Yvonne Gonzalez Rogers in Oakland.
The settlement signifies a turning point for Meta and the social media industry as a whole, with significant financial repercussions and the implementation of platform changes to address concerns over children’s safety and addiction.